How The Housing Market In Chicago Is Making Waves For Flippers
With the rising quandary of foreclosure in Chicago with a 19% increase since December 2006 as reported by a website that tracks property that’s in the process of foreclosure or properties that are already completed the foreclosure process. There are so many mortgages out here with high interest rates and monthly payments that are hard for people to make every month. The average mortgage depending on the interest rate can go for $550-750, but depending on the cost of the house you can actually see mortgages as high as $2500 a month. With the way people are losing their jobs and the economy being the way it is the cost of paying for a house has become somewhat impossible for those who are currently paying house notes and it’s the new homebuyer that’s going to have a pickle since there are more people who are dealing with credit issues due to improper spending and saving. Many people won’t see the chance of owning their own home until their leisurely 30s or early 40s if they don’t glean their financial station in order. Most places in Chicago are not granting as many mortgages since people have a hard time maintaining a credit score that makes them a lesser risk and many of the neighborhoods people want to retract in has increased in value due to some areas that are underdeveloped to having unusual homes built and also there’s a increased number of buyers who are purchasing to rehab and sell it again for twice the value it’s going for. People who are current and in the process of buying condos face higher fees since their mortgages are also including the assessment fees you begin to pay once you launch buying and that can accelerate you about $1200 a month or more. 2007 has seen a serious jump in foreclosures because so many houses and condos are going up for sale faster than they were sold when the original owners bought them. Many places now are going for $200,000 and up and fair the interest rate alone makes it that much harder to buy because with people filing for bankruptcy that hurts their chances at a good mortgage since it goes on your credit history and stays there for 5 years or longer. Cook County Recorder of Deeds reported an approximate number of nearly 5000 new foreclosure filings and procedures during the month of December, an 18% increase jump from the previous recording of statistics and the most of any metropolitan county in the entire state. Cook County’s foreclosure rate of one new filing for every 504 households was nearly more than twice the national average. The national average is usually one home for every 400 households that faces a foreclosure or is currently in the foreclosure process and has been listed as a free property. With one new foreclosure for every 400 households making it an increase of 3.5% just above the national average.Will County documented the metropolitan area’s highest foreclosure rate. The county reported halt to 600 new foreclosure filings during the month, an increase of 23% from the previous recording in the last month and the second most of any metro county in the state. Despite a drop in foreclosure activity by almost 50%, Kendall County documented the metro area’s second highest foreclosure rate at a ratio one new foreclosure filing for every 400 households.
Most of the other counties in the state reported increasing foreclosure activity in December 2006. De Kalb County was ahead, reporting an increase of nearly 100%, followed by Kane County, reporting a jump of nearly 50%; Du Page County, reporting increases of nearly 30%; and McHenry County, reporting an increase of nearly 25%. With statistics like this you’re wondering what is really going on here? You also have unscrupulous mortgage companies that are offering these catchy so called fixed rate mortgages, but once the buyer signs on the dotted line they’re locked into an agreement to pay so much per month for the next 25-30 years and also having to deal with interest rate increases when the market changes which is forcing a lot of homeowners to lose their homes because their incomes just simply cannot meet the demand and many are losing their jobs early or being forced into early retirements by their jobs so that can change how they keep up with the mortgage every month. It’s a disturbing trait with the fact that Illinois has such a high foreclosure rate that has doubled and tripled over the last 5 to 10 years with the increase of home ownership in the last 15 years from those who basically rented and are now wanting to buy a home. Definite areas of Chicago has been increasing the property lists of places in and around the city that’s become a haven for many who are getting a hold of foreclosed property to flip them and sell them for 2-3 times the amount the property is worth which is steadily increasing the value of communities by 10%. If you take a look at the property value say 5 years ago it wasnt nearly as much as it is now with the flippers coming through and taking homes that were foreclosed or taken for taxes and rehabbing them and selling them for twice what their true worth is. The advice for many who are considering purchasing a home should do their homework on mortgage companies or the bank you do your banking through on what they offer for mortgages because the problem with so many people knocking on your door for your business you don’t know who’s legit and who’s not you’re wanting to get the best deal and interest rate that’s fixed so you’re not getting all these unecessary increases in your mortgage and changes that can send your finances into kahootz which can cause people descend leisurely on making their mortgage payments and eventually having their home foreclosed on which makes it difficult to get back once a legal proceeding has taken place. It’s ideal according to mortgage brokers to research companies and even checking with the BBB(Better Business Bureau) to check for any action that was taken against them so that it helps you make a sound decision when considering a good mortgage company or bank.
As a wise consumer always do the necessary background checking and even checking with people you know and if you have someone you know in the banking industry who is also a loan officer you have pretty good chance to get quality insider information that can help you pass the red tape that many people acquire stuck with when applying and searching for loans. Many flippers are finding deals in places you would least expect and that’s how many of them get around paying a monthly mortgage by getting property that’s been taken for taxes and rehabbing them and even making what they remodel into their first home and selling what they rehab and putting the money towards any loans they had to take out to pay for their project. Yet in this day and age if you don’t have a good sense of business you’ll never be able to swim in the same pool as many flippers have learned to do when the market became popular. Part of doing the homework is knowing how much you’re going to be investing to rehab and then turn around and sell the property once the construction is completed. You also want to support in mind of what areas are in fact going to be popular since forclosures happen everyday when people are not paying their mortgages on time and the sheriff has been given the order to legally carry out eviction notices. Forclosure is not a good thing because it also goes on your credit history and when you have that on record that’s about as bad as a bankruptcy it stays on record for a few years making it hard to obtain mortgages and even renting property because that tells people you have a history of non-pyament and that’s damaging to someone when they’re being denied for mortgages and even a lease to rent a place when landlords and management companies run a credit check on the potential homeowner or renter and see they got some marks on portray which makes them a high risk to deal with. So that’s why foreclosures happen so frequently since people are given ample opportunity to choose outstanding payments, but in rare cases unforseen situations can crop up that can cause people to fall unhurried in paying their mortgages on time, but usually the banks and financial institutions are not looking to hear excuses when they want their money. So it’s easier to settle your outstanding payments than to lose your house.
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Filed under Rehab Loans Chicago by on Feb 1st, 2012. 
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